Investor Info

We are pleased to inform you that, the Board of Directors of Kotak Mahindra Bank Limited ("Bank"), at their meeting held on April 29, 2023, have recommended a dividend of Rs. 1.50 per Equity Share having nominal value of Rs. 5/- each for the financial year ended March 31, 2023, subject to the approval of Members at the Thirty-Eighth Annual General Meeting ("AGM") scheduled to be held on August 19, 2023.

Members may note that as per the Income Tax Act, 1961 (“IT Act”), dividends paid or distributed by the Bank shall be taxable in the hands of the members and the Bank shall be required to deduct tax at source at the prescribed rates from the dividend to be paid to members, subject to approval of dividend by the members at the ensuing AGM. The Tax Deducted at Source ("TDS") rate would vary depending on the residential status of the member and the documents submitted by them and accepted by the Bank.

The dividend, as recommended by the Board, and if approved at the ensuing AGM, will be paid to those Shareholders holding Equity Shares of the Bank, as on the Record Date i.e August 4, 2023. Shareholders whose bank accounts are registered with the Depository Participant/Registrar and Transfer Agent shall receive electronic credit of dividend and in case of Shareholders whose bank accounts are not registered; dividend shall be paid through physical warrants.

Please note that, since this Dividend will be declared at the ensuring AGM to be held on August 19, 2023, it will be taxable in your hands for FY 2023-24. Thus, all the details and declarations to be furnished should pertain to FY 2023-24.

SECTION A: FOR ALL SHAREHOLDERS - UPDATION OF DETAILS, AS APPLICABLE

In order to enable the Bank to determine the appropriate TDS rate as applicable, members are requested to submit relevant documents, as specified in the below, in accordance with the provisions of the IT Act in their respective Demat account(s) maintained with the Depository Participant(s); or in case of shares held in physical form, with the Registrar and Transfer Agent in the Register of Members, on or before the Record Date, i.e. August 4, 2023.

Please note that the following details, in case you had already registered with the Bank, as available with the Bank in the Register of Members/Register of Beneficial Ownership maintained by the Depositories will be relied upon by the Bank, for the purpose of complying with the applicable TDS provisions:

1. Valid and operative Permanent Account Number ("PAN")
2. Residential status as per the Act i.e. Resident or Non-Resident for FY 2023-24
3. Category of the Shareholder viz. Mutual Fund, Insurance Company, Alternate Investment Fund ("AIF") Category I and II, AIF Category III, Government (Central/State Government), Foreign Portfolio Investor ("FPI")/Foreign Institutional Investor ("FII"): Foreign Company, FPI/FII: Others (being Individual, Firm, Trust, Artificial Juridical Person, etc.), Individual, Hindu Undivided Family ("HUF"), Firm, Limited Liability Partnership ("LLP"), Association of Persons ("AOP"), Body of Individuals ("BOI") or Artificial Juridical Person, Trust, Domestic Company, Foreign Company, etc.
4. Email Address
5. Residential Address

Further to bring to your attention-

Rate of TDS @ 10% under Section 194 of the IT Act is subject to provisions of Section 206AB of IT Act which introduces special provisions for TDS in respect of non-filers of income-tax return. As provided in Section 206AB of the IT Act, tax is required to be deducted at higher of following rates in case of payments to specified persons at:

– twice the rate specified in the relevant provision of the IT Act; or

– twice the rate or rates in force; or

– the rate of 5%.

Where Sections 206AA and 206AB of IT Act are applicable i.e. the specified person has not submitted the PAN and not filed the return, respectively, the tax shall be deducted at the higher of the two rates prescribed in these two sections. The term ‘specified person’ is defined in Sub-section (3) of Section 206AB of IT Act who satisfies the following conditions:

– A person who has not filed the income tax return for the assessment year relevant to the previous year immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing of return of income under Section 139(1) of the IT Act has expired; and

– The aggregate of TDS and Tax Collected at Source ("TCS") is ` 50,000 or more in such previous year.

The non-resident who does not have Permanent Establishment and a person who is statutorily not required to furnish return of income are excluded from the scope of a specified person.

For the purpose of identification of specified person under Section 206AB of IT Act and TDS deduction, the Bank will be relying on the information from the Government enabled online facility to verify the status (i.e. Specified Person or not) and deduct TDS accordingly.

Non-resident members who do not have a Permanent Establishment in India are requested to inform the Bank well in advance and before the Cut-off Date for purpose of deducting TDS under Sections 195/196D read with Section 206AB of the IT Act. (Please download the declaration format given as Annexure-5)

The Bank reserves its right to recover any demand raised subsequently on the Bank for not informing the Bank or providing wrong information about applicability of Section 206AB of IT Act, in your case.

SECTION B: TDS PROVISIONS AND DOCUMENTS REQUIRED FOR RESPECTIVE CATEGORY OF SHAREHOLDERS

Shareholders are requested to take note of the following TDS rates and additional information required by the Bank for their respective categories

A RESIDENT SHAREHOLDERs

A.1 Tax deductible at source for Resident Shareholders (other than resident individual Shareholders receiving Dividend not exceeding Rs. 5,000 during the FY 2023-24):

A.2 Nil Tax Deductible at Source on dividend payment to Resident Shareholders if the Shareholders submit documents mentioned in table below with the Bank / RTA:

B NON-RESIDENT SHAREHOLDERS:

Tax deductible at source for non-resident Shareholders

Please note that the Bank, in its sole discretion, reserves the right to call for any further information and/or to apply domestic law / DTAA for TDS. In case of ambiguous, incomplete or conflicting information, or the valid information/documents not being provided, the Bank will deduct tax at the rates applicable as per the Act

The formats of the documents can be downloaded from the website of the Bank viz.: https://www.kotak.com/en/investor-relations/investor-information/investor-info.html

The required documents have to be uploaded on the portal https://ris.kfintech.com/form15 of KFin Technologies Limited, Registrar and Share Transfer Agent of the Bank or email at [email protected], on or before August 4, 2023

Please note that the Bank will not be able to consider the documents/communication on the tax determination /deduction uploaded or mailed on portal after August 4, 2023.

Notes:

• Application of TDS rates are subject to due diligence and verification of the Shareholder details as available in register of members on the record date and any other additional documents that may be submitted on or before August 4, 2023.
• All documents to be submitted are required to be self‐attested (the documents should be signed by Shareholder/authorised signatory stating the document to be "certified true copy of the original"). Benefits depend upon availability of the documents within the time specified and verification of the same by the Bank.
• Members may note that in case the tax on said dividend is deducted at a higher rate in absence of timely receipt, or insufficiency/incomplete/incorrectness of the aforementioned details/documents from you, an option is available to you to file the return of income as per the Act and claim an appropriate refund, if eligible. No claim shall lie against the Bank for such taxes deducted.
• In case of non-resident Shareholder, in the event of mismatch in the category of Shareholder as per the register of members and as per fourth letter of PAN, the Bank would consider category to which higher surcharge rate applicable.
• In case of joint Shareholders, the Shareholder named first in the Register of Members is required to furnish the requisite documents for claiming any applicable beneficial tax rate.
• In case, the dividend income is assessable to tax in the hands of a person other than the registered Shareholder, as per Rule 37BA, the TDS shall be deducted in the name of such other person if the registered Shareholder provides a declaration as prescribed in this regard. (Please download the Link given as Annexure-6). The registered Shareholder is required to furnish a declaration containing the name, address, PAN of the person to whom TDS credit is to be given and reasons for giving credit to such person.
• The above communication on TDS sets out the provisions of the law in a summary only and does not purport to be a complete analysis or listing of all potential tax consequences. Shareholders should consult with their own tax advisors for the tax provisions that may be applicable to them.
• For those whose PAN is found to be valid, the Bank will arrange to email a soft copy of the TDS certificate to the registered email IDs of the respective Shareholders in due course. The TDS amount will also be reflected in Form 26AS of the Shareholder, which can be downloaded from their e‐filing account at https://www.incometax.gov.in/iec/foportal/

Please reach out at [email protected], for any queries.

• Annexure 1- Form 15G
• Annexure 2- Form 15H
• Annexure 3- Declartion for Resident Shareholders
• Annexure 4- Form 10F
• Annexure 5- Declaration from Non Resident Shareholder_FII
• Annexure 6-Declaration under Rule 37BA